A notice savings account is a flexible savings option that offers better interest rates than most easy-access accounts, as long as you give advance notice before withdrawing your money.
Typically, you must provide 30, 60, or 90 days' notice (or longer) before making a withdrawal. In return, banks and building societies reward you with higher interest compared to instant-access savings.
Notice accounts are ideal for savers who don't need immediate access but want more flexibility than fixed-rate bonds. They strike a balance between access and returns.
Typically pays more than easy-access savings accounts.
Ideal if you can plan withdrawals in advance and don't need instant access.
Many notice accounts allow you to add funds over time, unlike fixed bonds.
Withdrawals need prior notice (e.g., 30–90 days) or you may lose interest.
Rates can change, unlike fixed-rate bonds which lock in a guaranteed return.
Not suitable for emergency funds you may need at a moment's notice.
1. What is a notice savings account?
A notice savings account is a type of savings account that requires you to give advance notice — typically 30, 60, 90 days or longer — before you can withdraw your money. This notice period allows banks and building societies to manage funds more effectively, so they reward you with a higher interest rate compared to most easy-access accounts.
These accounts strike a middle ground between instant-access savings (which let you withdraw any time, usually at lower rates) and fixed-rate bonds (which lock your money away for a set term). Notice accounts offer a balance of flexibility and improved returns, making them attractive for savers who can plan their withdrawals in advance.
If you need access sooner than your notice period, some providers allow early withdrawals, but this usually means forfeiting interest equal to the notice period.
2. Key features of notice accounts
Notice savings accounts stand out because they balance flexibility with better interest rates. By agreeing to give your provider a set notice period — typically 30, 60, or 90 days — you allow them to manage funds more efficiently, and they often reward you with higher rates than standard easy-access accounts.
While notice accounts usually pay more than instant-access savings, they tend to fall slightly below the rates offered by fixed-rate bonds of similar terms.
These accounts are designed for savers who can plan their withdrawals in advance. They combine the convenience of being able to top up funds at any time with the benefit of better rates, as long as you respect the notice period.
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Notice period: - Withdrawals require advance notice, such as 30, 60, or 90 days.
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Interest rates: - Usually 0.5–1.0% higher than easy-access accounts, but lower than fixed bonds.
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Variable rates: - Most accounts have variable interest, which can change over time.
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Top-up flexibility: - You can usually add funds any time, unlike most fixed-term products.
A 30-day notice account currently pays around
4.5% AER, while a 90-day notice account is closer to
4.5% AER.
Longer notice periods can result in higher rates, but this is not guaranteed — banks adjust rates based on funding requirements and market competition. In some cases, a 30-day account can outperform a 90-day product if the provider wants to attract more immediate deposits.
3. Notice periods explained
A notice period is the time you must wait after requesting a withdrawal from your savings. Common options include 30, 60, 90, or even 120 days — and generally, the longer the notice, the higher the interest rate.
These are the most common notice periods and how they typically compare — though actual interest rates can vary, and longer notice does not always guarantee higher returns:
- 30 days: - Often a good choice for short-term savers, but can sometimes match or exceed longer-term accounts if providers want fast deposits.
- 60 days: - A mid-point option, offering a balance of access and potentially improved rates — though not always higher than 30-day accounts.
- 90+ days: - Typically offers stronger rates due to reduced liquidity, but market trends can sometimes reverse this expectation.
Estimate how much interest you might forfeit if you withdraw before the end of the notice period.
4. Do notice accounts pay more interest?
Notice accounts usually pay higher interest rates than instant-access accounts because they provide banks with more predictable funding.
By agreeing to a notice period (e.g., 30 to 180 days), savers give providers greater certainty about when funds can be withdrawn,
allowing them to lend or invest that money more effectively. In exchange, banks reward savers with a better rate.
Macroeconomic factors also play a role. When central bank rates rise (like the Bank of England's base rate),
providers often compete for deposits by offering higher rates on products with limited access.
However, notice accounts typically remain a step below fixed-rate bonds because bonds lock in money for longer,
giving banks the highest level of funding stability.
Here's a comparison of the current top rates across popular savings account types:
Account Type |
Top Rate (AER) |
Provider |
Link |
Easy-access savings |
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90-day notice savings |
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180-day notice savings |
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These figures come from the latest best-buy tables and are updated frequently as banks adjust their offerings in response to interest rate changes and market competition.
5. Comparison with fixed-rate bonds and instant access
Notice accounts occupy a middle ground between easy-access savings accounts and fixed-rate bonds.
They typically offer better rates than instant-access accounts, without locking your money away for years like a fixed-term bond.
Fixed-rate bonds require you to commit your savings for a set term (e.g., 1 or 2 years) to guarantee a rate.
Notice accounts, by contrast, let you withdraw funds with advance notice — usually 30, 60, or 90 days —
providing a balance of flexibility and return.
When choosing between notice accounts, fixed-rate bonds, and easy-access savings, consider the following:
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Flexibility: - Notice accounts allow withdrawals with notice, while fixed-rate bonds rarely permit early access.
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Rates: - Notice accounts generally pay more than easy-access accounts but slightly less than fixed bonds of similar terms.
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Penalties: - Early withdrawals from a notice account result in lost interest equal to the notice period.
Fixed bonds often disallow early withdrawals entirely.
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Top-ups: - Many notice accounts allow ongoing deposits, whereas fixed bonds are typically single-deposit products.
If you want to combine competitive interest with moderate access, notice accounts can be a smart alternative to fixed bonds.
For the latest top rates across all savings types, visit our
savings account comparison page.
6. Tax considerations
Interest earned on notice savings accounts is treated as income and may be taxable.
Most savers, however, pay no tax thanks to the
Personal Savings Allowance (PSA) — which allows up to £1,000 of interest tax-free for basic-rate taxpayers
and £500 for higher-rate taxpayers.
If your savings interest is likely to exceed your PSA, you could consider
a
cash ISA,
where all interest is tax-free.
Using both a cash ISA (for tax protection) and a notice account (for higher returns) can be an effective strategy.
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PSA limits: - £1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers, and none for additional-rate taxpayers.
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Interest reporting: - Banks and building societies report interest automatically to HMRC,
so you only need to act if you exceed your PSA.
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ISA vs notice accounts: - Cash ISAs sometimes pay slightly less,
but the tax-free status may offset the difference.
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Couples' strategy: - Each partner has their own PSA,
meaning joint savings can effectively double the tax-free allowance.
For larger balances, combining notice accounts (for strong rates) with ISAs (for tax-free interest)
is often the most efficient approach.
7. Who are notice accounts best for?
Notice accounts are ideal for savers who want a balance between flexibility and higher interest rates. They suit those who can plan their cash needs in advance and don't require instant access to funds.
These accounts work well if you have a medium-term savings goal—such as building a house deposit, paying for a wedding, or creating a rainy-day fund—where you can tolerate a short waiting period for withdrawals.
If you're likely to need your money at a moment's notice, an easy-access account may be a better fit. But if you don't want to lock your savings away in a fixed-term bond, notice accounts can provide a good middle ground.
8. Pros and cons
Notice savings accounts offer a middle ground between instant access and fixed-term savings. Here's a balanced view of their advantages and drawbacks:
Pros
- ✓ Higher rates than standard easy-access accounts.
- ✓ Flexible top-ups and withdrawals (with notice).
- ✓ Protected by the FSCS up to £85,000 per person.
- ✓ No long lock-in period, unlike fixed bonds.
Cons
- ✗ Withdrawals typically require 30 to 120 days' notice.
- ✗ Interest rates are often variable and may change.
- ✗ Generally lower returns than fixed-rate bonds.
- ✗ Not ideal for immediate or emergency access.
9. Tips for choosing a notice account
The best notice account for you will balance interest rates, withdrawal flexibility, and security.
Here are some key factors to keep in mind before opening an account:
Before committing to a provider, compare not only the headline interest rates but also how accessible your funds will be and whether the account offers reliable protection.
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Interest rate vs. term: - A 90-day notice account may offer higher rates than a 30-day one, but make sure the wait period suits your needs.
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FSCS protection: - Ensure your provider is covered by the Financial Services Compensation Scheme (FSCS)
to protect up to £85,000 of your savings per person, per banking group.
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Partial withdrawals: - Some accounts allow partial withdrawals with notice; others require you to give notice on the full balance.
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Rate cuts: - Variable-rate notice accounts can reduce their interest rate. Check if the provider gives prior notice of changes.
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Access method: - Online-only providers often offer better rates, but consider if you need branch or phone access.
Always review the account's terms and conditions. Even small differences in interest or withdrawal rules can affect your returns,
especially if you need quick access to your funds unexpectedly.
10. Example rates
Notice accounts generally pay higher interest rates than instant-access accounts because your money is tied up for a set notice period.
Below are some of the top notice accounts available right now: